The Glasgow Financial Alliance for Net Zero (GFANZ), a coalition of global leading financial institutions, launched an Asia-Pacific (APAC) network and office in Singapore on June 8, as reported by Nikkei Asia on the same day. This marks the first-ever regional office of GFANZ. The APAC network aims to deepen collaboration with regional financial institutions and facilitate investment in decarbonization and renewable energy. The Singapore office will receive support from Singapore state investor Temasek , the Monetary Authority of Singapore (MAS), and the Singapore Exchange. According to GFANZ, all regions need to join forces to decarbonize their economies, and the global financial system will need to fund the transition. GFANZ also plans to set up chapters with offices in countries across APAC.

Founded in 2021, GFANZ has more than 450 member firms including banks, insurers, asset managers, and financial service providers, representing around 40% of global private financial assets. All members of GFANZ have committed to net-zero emissions by 2050. Furthermore, they also aim for net-zero emissions in their investment portfolios. Last November, the alliance declared at the COP26 summit that member companies could offer the estimated USD100tr of finance needed for net zero over the next 30 years. According to the UN-backed Race to Zero campaign, APAC needs USD13.6tr of investment over the decade to facilitate the global net-zero transition and avoid the worst impacts of climate change. GFANZ’s APAC network consolidated Singapore’s status as the green finance hub among the Association of Southeast Asian Nations (ASEAN). The country has accounted for around half of ASEAN’s green bond and loan market.

Sources:

https://asia.nikkei.com/Spotlight/Environment/Climate-Change/Climate-finance-alliance-launches-Asia-network-to-promote-investment

https://www.straitstimes.com/asia/se-asia/global-finance-coalition-sets-up-singapore-office-to-spur-regional-climate-action

https://finance.sina.com.cn/esg/2020-08-13/doc-iivhuipn8462924.shtml